Internet TV Downloads Help, Not Hurt, TV DVD Sales

When studios began selling TV shows online on sites such as iTunes, most retailers figured the practice would have a detrimental effect on DVD sales. Well, according to studio reports for a few newly released TV sets, retailers need not worry.

Sales of DVD sets like Lost: Season Two, Desperate Housewives: Season Two and The Office: Season Two sold just as strong, if not stronger than their respective season one sets. The Office in particular did very well, selling nine times more units in the first week, than its first season.

Disney chairman and CEO Bob Iger told investors at the Goldman Sachs Communacopia conference this week that Lost was the top-selling download, but its season-two DVD sales have topped the first season.

“The results have been stunning, much stronger than last year,” he said. “That’s very interesting. It suggests that you didn’t have a cannibalization effect. If anything, maybe it kept Lost more top of mind.”

ABC’s ratings also weren’t hurt by the downloads, and Iger predicted that consumers will watch 10% more hours of TV over the next five to 10 years.